IDS jilts Ofex in favour of Aim
Article Date: Jul 04 2001Interactive Digital Solutions, a group that was intent on listing on Ofex, will now make its way to Aim following pressure from institutional backers. Leslie Copeland reports.
Gareth Thomas, chief executive of the digital software venture, said the group had intended to list on Ofex within the next few weeks. However, he said that most of the venture capital trusts that were taking part in the group's £1.25 million fundraising would only proceed with their investment if IDS moved to Aim instead. Says Thomas: 'we've had a very good response to the fundraising, but the VCTs are more comfortable with Aim than Ofex'.
The group, which has just completed a new placing prospectus, will now raise £1.5 million. Talisman VCT, the fund set up by Seymour Pierce, and Ofex fund Scottish Value Management are believed to be among the backers of the venture.
In many respects, IDS' ability to raise funds for cutting edge technology in the current climate is a welcome sign. Its chief asset is its digital software technology called RISC (Room, Interactive, System, Console), which it claims could revolutionise the four and five star hotel market by putting them at the forefront of media technology.
The RISC system operates over a new high-bandwidth Cat 5 cable which can deliver interactive digital television, video, music, and internet access 'on demand' to consumers in hotel rooms.
Thomas says the system has been designed so that all the services mentioned can be accessed via a new single system. This replaces the need for the wide variety of devices currently used in hotels such as televisions, VCRs, computers, faxes and music systems.
IDS intends to procure the single systems from major suppliers and has content deals in place with a variety of providers.
At present, the group has received keen interest from a clutch of independent hotels for the installation and upkeep of the systems. These 'tentative' orders total around £1.78 million and the £1.5 million placing currently underway is intended to fund this initial business.
If these orders are secured, IDS will receive income from installation and support services over a number of years. Over the long term, however, the group intends to focus on being a pure software developer and licenser. It hopes to eventually appoint distributors to market and install the systems worldwide, with income being derived from license fees and level of usage.
Nominated adviser to the Aim float will be Grant Thornton. Nominated broker is likely to be either Seymour Pierce or J M Finn. Dealings are expected to commence in early August.
This story is from Growth Company Investor, the independent voice on fast-growing companies. Subscribe today for the latest AIM recommendations.
